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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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The Better Place business model faced many challenges in terms of consumer preferences, market suitability, competitors/substitutes, and the threat of technology changes.

Consumer preferences: Analysts said it was likely that consumers who had got used to the luxury provided by big, ICE-powered automobiles and their various features, would not be too impressed by the electric cars that would operate in the Better Place ecosystem...

Faced with depleting reserves of fossil fuels, volatility in the price of crude oil, and increasing concerns about environmental pollution and greenhouse gas emissions, the global automotive industry was gradually moving toward electricity as the source of power for automobiles, at least in a hybrid form...